CASH-STRAPPED PAKISTAN SECURES $655 MILLION ADB PACKAGE

The Asian Development Bank (ADB) granted a financial package to Pakistan under three different loans

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In a move to alleviate its financial woes, Pakistan has successfully secured a USD 655 million financing package from the Asian Development Bank (ADB). This comprehensive package, approved by the ADB, comprises three distinct loans aimed at addressing various challenges faced by the country, including domestic resource mobilization, postflood rehabilitation efforts, and agricultural productivity enhancement.

The announcement of this financial support comes at a critical juncture, just days after Finance Minister Shamshad Akhtar publicly declared Pakistan's public debt as "unsustainable." The ADB's decision to extend this financial lifeline underscores the urgency of addressing Pakistan's economic concerns.

The breakdown of the financing package includes a significant USD 300 million allocated for improving domestic resource mobilization. This initiative aims to strengthen the country's fiscal foundations, despite concerns raised by the Finance Minister regarding the sustainability of Pakistan's current debt trajectory.

Additionally, USD 275 million has been earmarked for rehabilitating schools damaged by the devastating floods that struck Pakistan in August 2022. This allocation underscores the ADB's commitment to supporting the country in recovering from natural disasters and rebuilding critical infrastructure.